Cancellations & non-renewals of an architects/engineers professional liability policy-
The same parameters of the cancellations and non-renewals will be common amongst most insurance companies.
Here is an example of the policy wording:
CANCELLATION & NON-RENEWAL
(A) The Insurer may cancel this Policy for non-payment of premium by sending notice to the Named Entity not less than 10 calendar days prior to the date of cancellation. The Insurer may cancel this policy, for reasons other than nonpayment of premium, by sending notice to the Named Entity not less than 90 days prior to the date of cancellation.
(B) The Insurer may non-renew this Policy by sending written notice to the Named Entity no less than 60 days before the expiration of the Policy.
(C) The Named Entity may cancel this Policy by sending written notice of cancellation to the Insurer. Such notice shall be effective upon receipt by the Insurer unless a later cancellation time is specified therein.
(D) If the Insurer cancels this Policy, unearned premium shall be calculated on a pro rata basis. If the Named Entity cancels this Policy, unearned premium shall be calculated at the Insurer’s customary short rates. Payment of any unearned premium shall not be a condition precedent to the effectiveness of a cancellation. The Insurer shall make payment of any unearned premium which it received from the Named Entity as soon as practicable.
This is different from the non-renewal notice that can be given to your firm’s client. Those will need to be endorsed and are typically only 30 days’ notice of cancellation, not for non-payment of premium.
All of your firms’ policies will have different cancellation and non-renewal notices, be sure you become familiar with those provisions. If you have any questions about cancellations and non-renewals please call or email your Professional Underwriters agent for assistance.